At a break-even point of 400 units,variable costs were $400 and fixed costs were $200.What will the 401^st unit sold contribute to operating profits before income taxes? A)$.50 B)$1.00 C)$1.50 D)$2.00

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Quizplus · Accepted Answer

The 401st unit sold will contribute $1 to operating profits before income taxes. This is because the variable cost per unit is $1, and the fixed costs are already covered by the sale of the first 400 units.

At a Break-Even Point of 400 Units,variable Costs Were $400